Business Insight From The Business Man

Category: Ukraine’s Economy

A new Ukraine was created in 2014 when pro-European Protests unseated president Viktor F. Yanukovych. The next year, citizens gathered at the Independence Square in Kiev to show their unity and support for the new government. However, the new state is under constant threat from Russian backed separatists based in eastern Ukraine.

The new country aims to be corruption free and pro-democracy. This transformation has been made possible by a rare show of solidarity and participatory democracy that saw the power of the people drive away a corrupt government from power. The people have rallied behind the idea of an open society that is ready to work with Europe.

Nationalists Serving Ukraine
Many of the new leaders in power gave up their well-paying jobs in the private sector to take up the mantle of building their nation and serving their people. A good example is Natalie Jaresko who gave up her job as an investment banker to become the new finance minister.

However, this new state is currently facing the huge challenge of state bureaucracy and business oligarchy. In addition, the reformists are also facing open hostility from Vladimir V. Putin, Russia’s president. Another huge drawback facing the new government is the fact that radical reforms to implement the new Ukraine have been hidden from citizens and the world.

Ukraine is yet to completely establish the new government and fully implement policies that will improve the current state of affairs. The police force is yet to be fully restructured to remove corruption and bribery. The new Ukraine is structured like a participatory democracy that relies on a system of checks and balances. However, democracies like these move slowly.

The Future of Ukraine
The question that the European Union and the rest of the world should ask is, will the new Ukraine survive the Russian onslaught and build a better future for its citizens? Russia has stepped up its financial and military pressure on Ukraine. Vladimir Putin has been keen on destroying the new country before it can fully establish itself.

In order to properly defend itself, according to George Soros, Ukraine needs financial assistance to be able to maintain its military defense. An effective military defense will install investor confidence in the country and boost economic resurgence a. If the EU made a political and financial commitment to support the country, it would inevitably overcome the Russian onslaught.

Current reformers want to avoid the characteristics of the old administration and have further pledged to be held accountable for all the country’s expenditure. In addition, extensive legislation has been passed to this effect, and the government has asked for oversight assistance from the International Monetary Fund.

The EU should realize that the loss of Ukraine to Russia is a huge blow to the rule of law as emphasized by the union. With the help of the EU, Ukraine can establish a prosperous and stable country that will act as a clear example of the power of democracy and the rule of law. The Russian public will then mount pressure on Putin’s government and force the leader to follow in Ukraine’s path.